Gordon Brown's plan for global bank tax 'a step closer'

Gordon Brown is hoping the IMF will throw its weight behind plans for a global bank tax

The world's economic powers appear to be moving closer to a global bank tax in response to last year's crisis, Gordon Brown suggested today.

The Prime Minister has been a strong advocate of some form of co-ordinated levy on the banks, which could bring in tens of billions of pounds a year from the financial services sector worldwide to help stabilise the global economy and contribute towards development.

He is understood to be hoping that the IMF will throw its weight behind a global levy at its April meeting in Washington, and that a deal can be concluded at the G20 summit in Canada in June.

In an interview with the Financial Times today, the PM indicated that he believes opinion has shifted in favour of co-ordinated action as a result of US President Barack Obama's move last month to impose a 90 billion-dollar levy on Wall Street banks.

'I'm interested in the way support is building up for international action,' Mr Brown told the FT.

'People are now prepared to consider the best mechanism by which a levy could be raised.'

At the G7 meeting of finance ministers in St Andrews last November, Mr Brown floated proposals for a form of 'Tobin tax' on financial transactions to create 'a better economic and social contract between financial institutions and the public based on trust and a just distribution of risks and rewards'.

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The US swiftly indicated it was not ready to countenance a day-to-day financial transaction tax, but British sources insisted that this did not mean that a levy of some sort could not be agreed.

Alternative suggestions could include a tax on bank profits, turnover or remuneration.

A coalition of charities, aid agencies, green groups and unions yesterday called on all political parties to support a global 'Robin Hood tax' on banks to help tackle the human damage caused by the global economic crisis.

Backed by a film directed by Richard Curtis and starring Bill Nighy, the campaigners argued that a levy on transactions could raise billions of pounds to fight poverty, protect public services and fight climate change while making only a tiny impact on banks' profits.